OPEC+ needs to avoid oil market overheating amid faster economic recovery, with the equilibrium price projected to be $45-60 per barrel, Russian Deputy Energy Minister Pavel Sorokin said on Thursda
MOSCOW (Pakistan Point News / Sputnik - 07th October, 2021) OPEC+ needs to avoid oil market overheating amid faster economic recovery, with the equilibrium price projected to be $45-60 per barrel, Russian Deputy Energy Minister Pavel Sorokin said on Thursday.
Earlier this week, oil prices hit a record high since 2014 in the wake of OPEC+ reaffirming its decision to stick to its planned output increase. As of Thursday, Brent crude is trading at around $79.79, while WTI at $75.49.
Addressing the Energy Intelligence Forum 2021, the official said that world economies are recovering from the coronavirus pandemic at a faster rate than economists expected, which, in turn, affects global markets. OPEC+ needs to take note of the trend "in order to not allow overheating of the market," he added.
"We have not changed our view that we prefer stable prices, predictable prices. We do not want market to overheat. So in the long run, we expect the equilibrium range to be between $45-60 (per barrel). That is where the market can satisfy all the necessary demand," Sorokin said.
Last month, Sorokin said that the equilibrium oil price after the full market recovery following the economic crisis caused by the COVID-19 pandemic would stand at $55-60 per barrel.
